FDI Enterprises Research Articles

Environmental Cost Management Accounting in Fdi Enterprises

Environmental Cost Management Accounting in Fdi Enterprises

IMPACTS OF DIGITAL TRANSFORMATION ON FINANCIAL PERFORMANCE: EVIDENCE FROM VIETNAM

Today, with the Industrial Revolution 4.0, digital transformation is taking place strongly in many different fields. Digital transformation can bring a competitive advantage to enterprises. However, enterprises also spend a lot of money to implement digital transformation. Therefore, whether or not digital transformation increases company performance is always of concern to company leaders. This paper aims to analyse the impact of Digital Transformation on Financial Performance, including Revenue, Profit and ROA in Vietnam. Digital Transformation is represented by the variables Cloud Computing, Big Data Analytics, Artificial Intelligence, and the Internet of Things. We used Google Forms to survey 314 leaders of enterprises in Vietnam. Then, we used descriptive statistics, correlation and regression analysis to analyse the data. Research results show that Cloud Computing, Big Data Analytics, and Artificial Intelligence positively impact financial performance. Enterprises that apply digital transformation have better financial performance than other enterprises. In contrast, there is no connection between the Internet of Things and financial performance. In addition, Firm type and Firm size also affect financial performance. FDI enterprises have higher performance than others, and more giant-sized enterprises have higher performance than others.

The impact of knowledge management and innovation capacity on business results at FDI enterprises in Vietnam

The impact of knowledge management and innovation capacity on business results at FDI enterprises in Vietnam

Impact of the COVID-19 Pandemic on Investment Capital in Thai Nguyen Province, Vietnam

The COVID-19 pandemic has had a huge impact on investment capital in Thai Nguyen, including both domestic private businesses and businesses with foreign direct investment. In an effort to overcome the impact of the COVID-19 pandemic, Thai Nguyen province has proactively grasped difficulties and problems and has plans to support and create favorable conditions for businesses in the area, including FDI enterprises and production peace of mind. The results also show that Thai Nguyen proactively grasps the difficulties and problems of investors to promptly resolve, create and strengthen the trust of investors who have been implementing investment projects in the province.

The relationship between Foreign investment (FDI), Trade internationalization and Labor productivity in Vietnamese localities

This article studies the impact of FDI and international trade on labor productivity of Vietnamese provinces. Analyzing a sample of 63 provinces in the period 2010-2021, the research findings indicate positive impacts of FDI disbursed in the provincial economy. The number of employees in active FDI enterprises and exports on the labor productivity. In contrast, the number of active FDI enterprises and imports have insignificant effects on labor productivity; meanwhile, the economic growth influence negatively the labor productivity of provinces. On the basis of research results, we propose recommendations for attracting FDI implying large capital scale and high labor use: at the same time, it is necessary to increase exports by controlling selectively imports in order to improve labor productivity for Vietnamese provinces

Determinants of Foreign Investment Attraction Contributed to Social Economic Development: A Case Study in Vietnam

Objective: The study aims to measure the key factors influencing foreign investment attraction for social and economic development post-Covid-19 Pandemic in Vietnam.
 
 Method: In this study, the authors used a convenient and straightforward survey method to survey 700 investors of 700 FDI enterprises in 10 big provinces in Vietnam, processing data through SPSS 20.0. The study's value proposed policy recommendations rapidly and effectively, becoming an essential part of the economy and making positive contributions to the socio-economic development of Vietnam.
 
 Results: The article's findings found the key factors influencing the foreign investment attraction to serve the country's socio-economic development post-Covid-19 Pandemic in Vietnam with a significance of 1.0 percent and proposed many policy recommendations for policymakers and managers contributing to socio-economic development.
 
 Conclusions: Foreign direct investment is a critical capital source of the economy, a driving force contributing to social and economic development. The capital plays a vital role in socio-economic development. In particular, thanks to the priority of macroeconomic stability, precise orientation, and preferential policies in attracting foreign capital, even in a large-scale pandemic affecting the global economy. The study's value proposed policy recommendations rapidly and effectively, becoming an essential part of the economy and making positive contributions to the socio-economic development of Vietnam.

Tác động của Logistics tới xuất khẩu của doanh nghiệp Việt Nam trong thời kỳ Covid-19

his paper investigates the relationship between delay in international/domestic logistics and export reduction by using unique data from Vietnamese manufacturing firms obtained from the Vietnam Chamber of Commerce and Industry (VCCI) when conducting a survey on the situation of digital transformation at enterprises in the context of the Covid-19 epidemic in July-August 2020 (VCCI, 2020). An export reduction is a partial de-internationalization in which firms decrease overseas sales. Estimation results from the instrumental variable probit method show that if enterprises have troubles with international/ domestic logistics, reduction of exports becomes more severe. This result is more evident for small and medium enterprises and FDI enterprises. The Vietnamese government should identify logistics as an important service sector in the overall structure of the national economy, and introduce comprehensive measures to support enterprises to prevent supply chain disruptions.

Some Recommendations in Attracting FDI in Vietnamese Provinces VIa Using Time Series Data

The article will show Some recommendations in attracting FDI in Vietnamese provinces. In essence, FDI is the intersection of demand between the FDI-investing country and the FDI-receiving country, related to the expansion of the market of multinational investors. The results imply that the indirect spillover effect on the number of FDI enterprises has no direct role on labor productivity in the localities of our country. Based on the research results, we propose some recommendations in attracting FDI in Vietnamese provinces in order to increase their labor productivity. For ex, Vietnam needs to pay attention to the requirements of investors in a number of aspects such as: Openness, transparency, stability, predictability in terms of institutions, policies and laws; strictly and uniformly enforce the law, protect the legitimate rights and interests of investors; simple administrative procedures, ensuring the prescribed time.

The Actual Situation of the Labor Force in Fdi Enterprises, Suggestions in Training Work at Higher Education Institutions

The article provides an overview of the workforce situation at FDI enterprises in Vietnam. Based on collected and aggregated data on the labor force at FDI enterprises, the research team identified: difficulties in recruitment; the scarcity of high- quality personnel in some industries; lack of professionalism and discipline in labor ... are difficulties in human resource work in FDI enterprises today. Based on the current situation of the labor force and the remaining problems in the recruitment and employment of enterprises, the research team also makes suggestions for training activities at the establishments of higher education such as Focusing on training human resources with professional and technical qualifications and soft skills; Improving the quality of training; Professional training for learners or determining the structure of occupations that the market needs to conduct training.

The Actual Situation of the Labor Force in Fdi Enterprises, Suggestions in Training Work at Higher Education Institutions

The Actual Situation of the Labor Force in Fdi Enterprises, Suggestions in Training Work at Higher Education Institutions

Improving Tax Compliance Risk Management of Large Businesses in Vietnam

Tax compliance risk management is a modern management method to improve the compliance of taxpayers in general and large enterprises in particular. Over the past 10 years, tax compliance of large enterprises has become a significantly concerned issue of policymakers and tax administrators over the world. Due to the goal of profit maximization, the complex nature of business operations and spread across many regions and countries, large enterprises, especially multinational corporations, are at the high risk rate of tax compliance. The article uses a set of compliance risk assessment criteria of enterprises and secondary data from 556 large enterprises in Vietnam to assess the level of risk, classified by economic sector and type of business. The results show that the foreign-invested economic sector and the type of limited liability company with 2 or more members have the highest level of compliance risk while the state sector and the 100% State owned enterprises have the lowest risk. Therefore, it recommends that improving tax compliance and reforming tax incentive policies, especially for FDI enterprises are of necessity.

The Impact of Corporate Social Responsibility on Strategic Objectives: Evidence from Vietnam

Carrying out corporate social responsibility (CSR) not only brings benefits to the community but also benefits the business itself. There are many studies on the application of CSR in business strategies to create competitive advantages and sustainable development. However, CSR is still a new term in Vietnam, and the concept has various definitions and most studies are mainly theory-based with limited research on the real situation of CSR practices, especially in the case of FDI firms. Therefore, this study aims to investigate the impact of CSR implementation on corporate strategic goals, including reputation, innovation and differentiation of FDI firms in Vietnam. This study uses regression models to analyze survey data of 224 FDI enterprises in Hanoi, the capital of Vietnam. The empirical results indicated that implementing CSR significantly impacts improving the efficiency of deploying three business strategic goals: enhancing reputation, enhancing innovation, and creating a competitive advantage. The findings of this study suggest that FDI enterprises in Vietnam need to renew their perspectives and approaches to integrate and implement CSR, not only seeing CSR as a costly obligation or merely charitable activities, but truly an opportunity to create competitive advantages and sustainable development.

Difference in the role of public governance for enterprises performance of ownership types in Vietnam

ABSTRACT This paper aims to examine the difference in role of public governance on the performance of each business ownership type in Vietnam. Using FGLS regression and Blinder – Oaxaca decomposition methods, the study finds out gaps of enterprises performance among state-owned enterprises, non-state enterprises and FDI enterprises in Vietnam in the period 2016–2019. The variation is due to business characteristics and distinction between ownership types. Besides, the decomposition results show that public governance is a factor of the enterprises performance’s differentiation in Vietnam, and state-owned enterprises are often more favoured than FDI enterprises and non-state enterprises. Incentives for state-owned enterprises are mainly presented in policies, such as information public and transparency, reducing time-cost, reducing informal charges and local fair competition promotion. Meanwhile, incentives for FDI enterprises are mainly presented in policies, such as land policy, information public and transparency, reducing time-cost, fair competition promotion, business support services, local legal frame and security. Specifically, the study implies that improving public governance in Vietnam in the period 2016–2019 has resulted in positively effect on state-owned enterprises’ performance and fairly low effect on those of FDI enterprises and non-state enterprises.

The Effect of Institutions on Productivity Spillovers from FDI to Domestic Firms: Evidence in Vietnam

Purpose: The purpose of this study is to investigate the impact of formal institutions and their components on productivity spillovers from FDI enterprises to domestic firms’ TFP in developing countries like Vietnam. Design/methodology/approach: The study, conducted in two steps to explore the relationship, is to estimate the firm's TFP in accordance with the semi-parametric method of Levisohn and Petrin (2003). Regression is in accordance with the equation with panel data and adjusted by Driscoll and Kraay standard errors. An unbalanced panel data, related to more than 61,600 Vietnamese manufacturing firms from 2012 to 2017, is combined with the Provincial Institutional Quality Survey (PAPI index) and IO table. Findings: The local institutions have a positive impact on promoting learning ability and increasing productivity of domestic firms, especially small and medium enterprises (SMEs) that take better advantage of this effect. Vertical linkages with FDI enterprises assist local firms to increase productivity while horizontal linkages bring in negative effects. Domestic enterprises with high productivity (in the top 25%) receive positive spillover effects from horizontal linkages and vertical linkages and gain positive impacts of the institution on productivity whereas the group of low-productivity enterprises records negative impacts. This research highlights those enterprises operating in the region where institutions have transparency, accountability, participation in comments and effective corruption control can absorb spillovers and improve their productivity as well as the transparency and corruption control are recognized as having a positive impact through horizontal linkages. Research limitations/implications: With the limitation of research data being conducted only on manufacturing enterprises, there is a lack of data on the impact of service enterprises. The study only stops at understanding the impact of formal institutional effects on productivity spillovers whereas informal institutional effects will be studied in the future. Furthermore, the productivity spillovers of FDI enterprises are explored in general besides other FDI forms that will have different productivity spillovers like offshore. From the results of this study, the governments of developing countries should improve their institutions to encourage local enterprises to take the advantage of spillover effects from FDI enterprises as well as pay more attention to regional factors by supplementing development priority policies based on the capacity of each region. Institutional quality at provincial level has a positive impact on productivity spillovers; consequently, it is essential to have policies for further institutional improvement. Originality/value: This is the first research paper on the impact of the institutional factor at provincial level on firm’s productivity in developing countries like Vietnam. Theoretically, the impact of formal institutions on spillover effects from FDI enterprises is also clarified. In addition, our findings have implications for local economic development policies: vertical linkages promote domestic firms to increase their productivity while horizontal linkages of FDI enterprises in the same industry generate adverse impacts. This paper suggests some feasible solutions for SMEs in developing countries towards their productivity improvement.

Development of supporting industries towards production and export autonomy in Ho Chi Minh City

The purpose of this study is to assess the development of the supporting industries in Ho Chi Minh City through the assessment of the localization rate, technology level, e-commerce application situation, results of production and consumption of products in the list of products of the industry. The data collected from the results of the enterprise survey in 2020 from the Statistics Department of Ho Chi Minh City (2020) of 443 domestic and foreign-invested enterprises operating in Ho Chi Minh City. Through the assessment, the localization rate in four key sectors mostly accounted for more than 50% specific: the food-food sector (82.6%), the rubber pharmaceutical chemistry industry (65.3%), the electronics industry (50.5%) the gas industry (73.6%) and the two traditional sectors, the textile and garment sectors (65.3%) and the leather and related products (57.3%). The proportion of the cost of materials, components and spare parts produced by domestic enterprises is very low only 3.2%, mainly FDI enterprises, state-owned enterprises also only provide a part of raw materials for production (focusing only on food processing industry supplying 20-35% and garments is 20%). From the results of the analysis, the article proposes a number of solutions belonging to the policy of supporting the supporting industries including: solutions on planning and distribution of industrial sectors; supporting investors in infrastructure; develop technology, improve management capacity, capital, human resources and consumption market in order to develop the industrial industry towards production autonomy, serving the production of exports with a high domestic rate.

The relationship among local marketing, regional linkage, a destination image, and foreign direct investment firms’ satisfaction: A case study in long an province

The study investigates the relationship among local marketing, regional linkage, a destination image, and FDI firms' satisfaction in Long An province. Qualitative and quantitative research was implemented as follows: The qualitative research was executed through focus group discussions with 10 owners or export managers of FDI firms; The quantitative research was conducted through direct interviews with 491 managers of FDI firms in Long An. Empirical results justifies the relationship among local marketing, regional linkage, a destination image, and FDI firms' satisfaction. The results show the following key metrics: (i) FDI firms' satisfaction is affected by a destination image (with Beta = 0,141), local marketing (with Beta = 0,202), and regional linkage (with Beta = 0,173); (ii) A destination image is affected by regional linkage (with Beta = 0,456), and local marekting (with Beta = 0,150); (iii) Local marketing is affected by regional linkage (with Beta = 0,367). The findings are foundational for policy proposals for Long An province to improve the satisfaction of FDI enterprises. However, the research has certain limitations: (i) the study was only conducted in Long An, (ii), the spatial correlation among Ho Chi Minh City, Tien Giang and Long An linked regions was neglected.

Cost-benefit Analysis of FDI: FDI Barriers and Firm Internal Capabilities

We conduct this study to make an assessment on FDI, its benefit and connection with firm internal capabilities in Vietnam case. Methods we use include: qualitative analysis with statistics and data processing. Also, we used qualitative analysis to make policy suggestions with synthesis and inductive methods. We analyze the research based on five dimensions: corporate governance capacities, human resources, finance, technology, and supply. Research results show us that the five dimensions together with viewpoints from experts are quite suitable for our conducted experimental research, esp. To express the connection between local firms, national firms and foreign investment firms. Also we assess FDI based on an approach of cost-benefit analysis including FDI barriers and firm internal capabilities. Through a survey of 55 managers of FDI enterprises in Viet-Sing industrial park, the results show that enterprises here only face three difficulties in terms of costs of labor, water and energy supply, and governance and hostile regulations. This study makes a small contribution to FDI barrier theory through empirical evidence from an industrial park in a developing country, Vietnam. Then we can make policy implications and our study limitation is that we can expand for other market.

Solutions for sustainable development of high quality human resources in FDI enterprises in Viet Nam

Solutions for sustainable development of high quality human resources in FDI enterprises in Viet Nam

Assessment of the Effect of FDI on Employment in the Enterprise Sector in Vietnam

Since the Foreign Investment Law was first promulgated in Vietnam in 1987, the inflows of FDI to the country have increased significantly over the years. Among the contributions of FDI to the socio-economic development of the country, interest is placed on employment creation. The purpose of this study is to assess the effect of FDI on employment in the enterprise sector in Vietnam. The empirical study is conducted at the local level with all 63 provinces nationwide in the period from 2006 to 2014. The results reveal that FDI enterprises have a higher effect on employment creation than domestic enterprises. Beside, a positive relation between the share of FDI enterprises (in terms of the size of FDI in relative to the total capital resource) and the growth of employment in the enterprise sector is found which implies that the relatively larger presence of FDI enterprises can have positive spillover effects on employment growth. However, the spillover effects of FDI are considered limited.

FDI’s Crowding out Effect on the Exit of Domestic Firms in the Textile and Garment Industry

For the Vietnamese economy in general and the textile and garment industry in particular, FDI is a external resource that brings many positive effects. However, the presence of FDI enterprises can cause the negative impact of creating crowding out effect on domestic firms. This study is conducted to answer the question of whether the presence of FDI enterprises affect the survival of domestic firms or not? The authors apply the logistic regression model to analyze the crowding out effect of FDI on the exit of domestic firms, using the case of the textile and garment processing industry which has a key role in Vietnam manufacturing industry and also attracted a large amount of FDI in recent years, to find evidence for this impact. Thereby, the research team will gives some policy implications to minimize the negative impact (if any) of FDI on domestic firms.